Go Pro Systems

Why Real Estate Professionals Need Blogs

Jerry Mcclellan (Goprosystems) — Thu, 08 Jul 2010 13:27:34 -0700

Depending on who you ask, on what day, blogging is either old-fashioned since we now have things like Facebook, LinkedIn and Twitter or it is much more viable way to promote your business than having website with content that stays in place.

More often than not, the people who say that blogging is dead are very tech savvy and started blogging when it was still new. Now that blogging has become part of the norm and is a established online communication medium, it is no longer cutting edge, so they want to abandon it.

Now, what is very old-fashioned is having a website and/or blog that you cannot maintain yourself. Gone are the days when you absolutely had to call on a programmer to maintain your website. If you have hired someone to help you with this, that is fine, but it should be on a user-friendly platform that allows you to make quick changes if you need to.

Another reason that a static website is old-fashioned is that it will not generate the kind of web traffic and search engine optimization (SEO) results that you need to stay competitive. Why is everyone so keen to blog and use Twitter, etc? Well, 1. They want to open up dialogue and be in conversation with current and prospective clients. 2. They want the constantly updated content that blogs and micro-blogging provide to make them stand out to the search engines.

Have you not started a blog? Or, did you start one and let it fall by the wayside? If so, it is time for you to get it going again. Remember that a blog does not have any rules. If you do not have the time or inclination to post content to your blog, get some help. Your blog can consist entirely of pictures and descriptions of the properties you want to sell. You can put up links to articles you think would interest your clients. Write up your real estate success stories. You can use voice-recognitions software to "speak" your blog.

At Go Pro Systems, we believe in taking advantage of all the ways technology can help us work better. Our automated campaign system will make lead conversion easier than ever and our lead generation tools incorporate a digital 800 number call capture technology that is second to none,

How Real Estate Professionals Can Use Foursquare

Jerry Mcclellan (Goprosystems) — Tue, 20 Jul 2010 11:17:47 -0700

If you have not yet heard of the popular app Foursquare, you are sure to hear of it soon. With all the talk of security and privacy on the internet, it is hard to believe that an app that is all about letting people know where you are would have such a meteoric rise, but it has. And as the old real estate cliché says, it is all about location, location, location.

Foursquare lets users check-in at various locations, giving them the opportunity to win prizes and compete with other users to become the most frequent patrons. Foursquare users relish gaining high status as frequent visitors and like to brag about becoming "mayor" of certain venues, especially if they have ousted someone else they know to become mayor. Businesses like restaurants and museums register on Foursquare and take advantage of the fact that it is a great promotional tool. Every mention a business gets each time a Foursquare user checks in is great publicity.

Did you know that real estate professionals can also use Foursquare to their advantage? While it is true that users may not want to stop by your office so many times that they become "mayor," you can still make your business a possible venue on the site and offer discounts.

Individual real estate agents can join Foursquare to reward current clients and promote themselves. Your brokerage can even register listings and offer prizes to people who check in when they attend an open house or visit with an agent.

Although Foursquare is location-based, this does not mean that only people in a user's general area get the message when they check into a location. Many Foursquare users broadcast their Foursquare posts on Facebook and Twitter. People all over the country and all over the world see these posts. Those who are planning to buy real estate in your area might look you up after learning about you through Foursquare.

Well-Designed Real Estate Website Is Critical to Attracting Potential Clients

Jerry Mcclellan (Goprosystems) — Wed, 26 May 2010 12:19:02 -0700

Realtors understand the importance of staging a house to promote a fast sale and ensure a good selling price. Hooking the buyer's interest is all about appearance. A house that impresses buyers from the moment they arrive at the curb through a tour of the bedrooms and inspection of the kitchen is one that is guaranteed to sell quickly. "Curb appeal" is equally important when real estate agents design their website. A well-designed website home page invites the visitor to stop and explore in much the same way that an attractive front porch invites a home buyer to come inside and look around. Easy-to-read typeface, attractive use of graphics and white space, pleasing eye flow and a well-organized and easily accessible index of website content work together to make a good first impression on website visitors and encourage them to stay and explore.

However, just as a home that looks attractive on the outside must have what the buyer is looking for inside to generate an offer, your real estate website must offer value-driven content geared to engage and maintain the interest of site visitors if you want potential clients to interact with and return to your website. Interior web pages that provide original content that is useful to home buyers and sellers will attract potential clients. Buying and selling how-to tips and checklists, home financing options and links to loan sites, community statistics, school district information, local recreational opportunities and shopping venues will promote return visits to your website as home buyers research different neighborhoods. Linking area real estate listings to your website ensures that home buyers will keep returning to check new listings.

Designing an effective real estate website is a combination of art and science. Considerable research has gone into the study of how website viewers look at a web page, how the human eye moves around a page, what attracts a viewer's attention and what causes him to lose interest. Well-designed professional web page templates use this information to place content and visual elements in optimal locations. Offering home buyers and sellers "one-stop shopping" through interior web page content and outside links to professional partners (loan officers, real estate attorneys, title companies, moving firms, home organizers, decorators, etc.) helps turn casual leads into paying clients.

Upgrade Your WordPress Website and Boost Your Bottom Line

Jerry Mcclellan (Goprosystems) — Thu, 15 Jul 2010 11:39:08 -0700

Recently when we asked a web designer we know why she was thinking about a career switch, she said that many web designers were doing this because programs like WordPress made it possible for people to design their own websites without hiring people like her.

WordPress was at first just a site people used to set up blogs but with time the software has evolved. If you are very web savvy or have a friend who is, you can use WordPress to create a professional looking website that will look like you spent a lot of money to have it designed.

It is fine to use the latest version of the WordPress software, but if you really want to make your site stand out, you will want to spend a little extra to upgrade it with plug-ins. Here are some plug-ins that work well for people who work in real estate:

Altos Toolbar

This connects your site to local markets and you can pull up charts and information to post on your website. It also lets people sign up to get e-mails with market information.

Backup Buddy

This will back up your website and ease the transition to a new server if you need to move to a new host.

Events Calendar

This can help you keep people informed about upcoming events, like open houses, and even incorporates Google Maps.

Meet Your Commenters

Are you curious about your followers? With this plug-in, you will be able get more information on them. You can see info on your followers' websites and social network profiles right in your WordPress dashboard.

WordPress Touch Pro

This plug-in turns your WordPress site into a mobile site for a number of mobile devices including the iPhone, Blackberry Storm and Android phones. This way you can be on the go and still get notified when someone comments on your site. If you need to, you can respond while your away from the office without having to wait until you are at your desk.

Does Choosing REALTOR® Over Real Estate Agent Give Consumers an Advantage?

Jerry Mcclellan (Goprosystems) — Wed, 14 Jul 2010 19:46:36 -0700

In the face-off between REALTORS® and real estate agents why should home buyers and home sellers care? Is there an actual advantage in choosing a REALTOR® over a real estate agent to handle your home purchase or home sale? REALTORS® say yes. Real estate agents say it's all a matter of semantics.

The majority of home buyers and home sellers seem to agree, treating the two terms synonymously, a practice that makes REALTORS® cringe. REALTORS® pay a premium in time, energy, education and fees to earn the right to place the registered REALTOR® trademark before their names. In several recent posts we've discussed the technical differences between REALTORS® and real estate agents and the level of professionalism subscribed to by members of the National Association of REALTORS® which is the self-governing industry organization that bestows the designation of "REALTOR®" on its members. But despite internal industry distinctions, is there a real difference to the consumer between REALTORS® and real estate agents that offers a practical advantage in choosing one over the other?

Perhaps. REALTORS® do offer a guaranteed level of professionalism and expertise that can be very important in ensuring that all the "i's" are dotted and "t's" crossed so that your home sale or purchase goes through without a hitch. REALTORS® subscribe to a Code of Ethics that generally guarantees consumers of fair and equal treatment. REALTORS® are required to complete annual continuing education courses, ensuring that they stay up-to-date on real estate laws and practices. REALTORS® have access to regional and nationwide multi-listing services that vastly expands a buyer's housing options and a seller's marketing audience.

But. While these services are important, 90% of the consumer's satisfaction with his home buying or home selling experience will center on his relationship with his real estate agent, whether that individual is a REALTOR® or agent. Many real estate agents are dynamite people with superior sales skills who go the extra mile for their customers. Many of those without REALTOR® status choose to work in offices owned and operated by REALTORS® so they can offer their customers the many advantages REALTORS® bring to the table. Best advice for home buyers and home sellers? Seek the best of both worlds. Choose an enthusiastic agent who knows the market and has a proven closing record and who is a REALTOR® or is associated with a REALTOR®.

Why REALTORS® Code of Ethics Matters

Jerry Mcclellan (Goprosystems) — Mon, 12 Jul 2010 13:19:41 -0700

Although it's a distinction few consumers make, there is a tremendous difference between a real estate agent and a REALTOR®.

A REALTOR® may be a real estate agent, but a real estate agent (or broker) is not necessarily a REALTOR®. REALTORS® are real estate professionals who belong to the National Association of REALTORS® (NAR), subscribe to the REALTORS®' Code of Ethics, and agree to abide by the ethical business practices and consumer protection standards set forth by this self-governing arm of the real estate industry.

In practice, REALTORS® are often business owners operating a real estate agency with which a number of real estate agents may be associated. Association with a REALTOR® provides real estate agents and brokers with valuable industry resources that are the sole purview of REALTORS®, such as multiple listing services and access to continuing education programs. Doing business with a REALTOR® as opposed to a non-affiliated agent provides home buyers and home sellers with assurance that they will be treated fairly and professionally in accordance with the highest standards in the real estate industry.

The REALTORS®' Code of Ethics contains 17 Articles and a number of underlying Standards of Practice that set out ethical behavior and business practices both between real estate agents and between agents and consumers. Considerably more restrictive than the state regulations that govern the issuance of realty licenses, the Code of Ethics provides consumers with an additional layer of protection against substandard practices, misrepresentation and fraud.

For buyers and sellers, important points in the Code of Ethics include:

REALTORS® will put the interests of buyers and sellers ahead of their own and treat all parties honestly.
They will refrain from exaggerating, misrepresenting or concealing material facts and will investigate and disclose facts when warranted.
REALTORS® will cooperate with other agents/brokers when in the client's interest and will not provide representation when a conflict of interest exists.
REALTORS® will not collect commissions or fees without seller's knowledge and consent and will not co-mingle client funds with their own.
REALTORS® will ensure that written documents are understandable and distributed to all parties.
They will not discriminate for any reason on the basis of race, color, religion, sex, handicap, familial status or national origin.

Advise Your Clients Not to Let Buyers Move in Before Closing

Jerry Mcclellan (Goprosystems) — Tue, 06 Jul 2010 13:43:03 -0700

Most of the time when we buy something, we do not get to take possession of it until we have paid for it. Unless there is some kind of rent-to-own agreement in place, a seller will normally hold onto an item or a house until they have received payment. However, there are exceptions to every rule. In rare cases in real estate, a seller may end up allowing a buyer to move in before closing.

As a real estate professional, you may have experienced or heard of a colleague experiencing some kind of glitch where things do not go as planned and closing is pushed back or the transaction is cancelled altogether. With that in mind, it is in your best interest to advise a seller not to allow a buyer to live in or otherwise access the house before closing.

What sometimes happens is a buyer has what seems like a perfectly reasonable request or they ask for what seems like a small favor. For example they may ask if furniture they purchased be put in an empty house prior to closing. Well, we all know how expensive it is to buy a home, and storage is not free, but what happens if deliverymen damage the property? Or the buyer may ask to move in before closing because they have nowhere to live. If need be, help them find a hotel, but do not let them stay in the property because if something unexpected happens, the seller still owns it. While it is nice to be nice, it just makes sense that a buyer can only use the house as they wish, once the paperwork is completed and they own it.

There are any number of possible scenarios in which letting a buyer move in before the deal is sealed can backfire. There are also any number of insurance issues that can crop up and as was mentioned, the seller owns the house until the buyer signs all of the paperwork, so anything that happens until then is the responsibility of the seller.

REALTOR® or Real Estate Agent? Difference Is More than Semantics!

Jerry Mcclellan (Goprosystems) — Wed, 07 Jul 2010 13:25:21 -0700

Many home buyers and home sellers use the words "REALTOR®" and real estate agent interchangeably, but the distinction is far greater than most people imagine. This is one of those rare cases where words do make a difference. The distinction may seem minor to consumers, a matter of semantics, somewhat like using Kleenex (a registered trademark) for tissue or jello (an informal spelling of the registered trademark Jell-O) for gelatin; but in the real estate world, there is a huge difference between a real estate agents/brokers and a REALTOR®

In 2003, a real estate agent who was not a member of NAR, petitioned the U.S. Patent and Trademark Office to cancel the trademarks, on the ground that "Realtor" and "Realtors" were generic terms rather than a trademark. On March 31, 2004, the USPTO's Trademark Trial and Appeal Board denied the petition.

Real estate agents, real estate brokers and REALTORS® are all licensed by the state to act as intermediaries between buyers and sellers of real estate to facilitate the sale and purchase of property. Only realtors, however, are members of the National Association of Realtors (NAR) and are entitled to use the REALTOR® registered trademark and refer to themselves as "REALTORS® ." Membership in the National Association of REALTORS® is not a mere matter of sending in a dues check every year. NAR members agree to conduct business in accordance with the realtor's Code of Ethics that sets ethical standards for truthful advertising and business behavior with clients and other real estate agents.

NAR membership and conference of the title of "REALTOR®" requires that real estate agents be licensed by the state in which they conduct business. To maintain their NAR membership, realtors must complete annual continuing education courses approved by their state licensing boards. These courses ensure that realtors remain up-to-date on real estate laws and regulations, consumer protection issues and ethical business practices.

The word "REALTOR®" next to a real estate agent's name is an indication to home buyers and home sellers of a commitment to excellence in knowledge, service and practice. NAR membership connotes commitment to self-regulation of the real estate industry and adherence to industry standards. In its Code of Ethics, the NAR demands adherence to 17 Articles and their underlying Standards of Practice which are strictly enforced among its membership. Complaints may be lodged with the NAR which metes out reprimands and fines to members, stopping just short of revoking licenses. Only state licensing boards, however, have the authority to revoke an individual's real estate license.

There seems to be a lot of controversy around this subject. What are your thoughts? How do you feel about this subject?

Next time: Why the "REALTORS®" Code of Ethics Matters

The Virtual Realtor: How Technology Is Changing the Real Estate Game

Jerry Mcclellan (Goprosystems) — Tue, 06 Jul 2010 11:44:50 -0700

It didn't start with Facebook, but Facebook caused the paradigm shift. Before Facebook, people communicated over the Internet via email. Some, particularly the younger crowd, used IM (Instant Messenger) to chat. The tech-savvy experimented with My Space; but it was Facebook that brought social media into the mainstream and changed the way we communicate. Thanks to the comfort level we have developed with Facebook, people now turn first to the Web to interact with each other and obtain information. Facebook wove social media into the fabric of our daily lives and in so doing changed the way we communicate.

The paradigm shift isn't limited to personal communication; it cuts across commercial and retail interactions and is changing the way real estate agents and brokers communicate with home buyers and home sellers. Improvements in technology and social media make it possible for a real estate agent to generate real estate leads, contact potential home buyers, conduct virtual property tours, answer questions and provide additional information instantaneously, bargain with sellers, forward financing calculators and information -- in effect, we do everything except sign the contract via the Internet, and the day when that is possible is quickly approaching.

In the not so distant future real estate agents and brokers are likely to deal with home buyers and sellers almost exclusively via the Internet. In fact, an amazing amount of realtor-client contact already occurs over the Internet. Most leads and communication with potential clients occur via email. Open house videos and virtual property tours can be downloaded on any smart phone, iPad or computer. Interactive maps allow you to provide buyers with neighborhood snapshots. Smart phones already offer mortgage calculators and other helpful real estate apps. The only thing lacking is the bundling of all these different social media nuggets into one cohesive, easy to access package.

The day of the virtual realtor is quickly approaching. People are comfortable communicating at a distance and on the go. The combination of social media and mobile applications is driving consumer expectations for instant communication. Savvy realtors will harness social media applications and create their own custom social media packages to respond to consumer demand for more info NOW!

How do you feel about the future of real estate?

New Tools to Help Realtors Manage Social Media Accounts

Jerry Mcclellan (Goprosystems) — Thu, 01 Jul 2010 10:48:01 -0700

Real estate professionals use social media for outreach and new applications to help you manage your social media and marketing output are rolling out all the time. If you are adventurous and do not mind switching things around now and them, you can try social media tools until you find the one or ones that work best for you.

If you find that you have a hard time keeping track of contacts, you might want to try Flowtown. This application does digging for you and presents you with the results. If you have someone's e-mail address, Flowtown can tell you their name, age, gender, location and the social networks they use.

Users get a separate profile page for all of their contacts once the service had combed the web for this information. Of course, if you feel like this is snooping, then this service is not for you. If you do not mind this kind of information gathering, then you can let Flowtown help you keep up with your clients. You can leverage this information as you wish, with the idea being that you use it to personalize your communication.

Follr helps organize your presence on multiple social media platforms using a virtual Social Card. The Social Card is kind of like a business card for the internet age--it combines your social media and online activity. And especially for real estate professionals, Follr offers an Enhanced Real Estate Social Card that promises to link your property-search sites and others with the Social Card. It is also helpful for anyone who manages a team of real estate professionals because there is a Team Platform. Employers can use it to monitor the social card activities of multiple employees. Follr aims to be your a one stop shop and users are encouraged to give out their follr social card address rather than information on their e-mail address, blog URL. Facebook page and LinkedIn,Twitter, Tumblr and Youtube accounts

Mortgage Lenders May Profit when FHA Lowers Seller Concessions

Jerry Mcclellan (Goprosystems) — Wed, 30 Jun 2010 12:21:49 -0700

Competing mortgage lenders stand to profit when the Federal Housing Authority (FHA) chops attractive seller concessions from 6% of home sale price to 3% later this summer. Home buyers and sellers still have a few weeks, possibly as long as a month, to take advantage of more lucrative seller concessions, but the clock is ticking and the FHA is expected to enact the proposed policy change before the end of August.

One of the primary reasons that home buyers have been attracted to FHA mortgages is the profitable seller concession rule that allows property sellers to pay certain taxes and services connected to the sale that would normally be paid by the home buyer. Naturally, buyers gain when sellers pay for things like loan origination fees, appraisals, transfer fees, inspections, closing cost and escrow costs. Under current FHA seller concession rules, home sellers could sweeten the deal by offering to pay for nearly everything except the buyer's down payment, up to an amount equal to 6% of the sale price. It's proved a powerful incentive to purchase a FHA mortgage and considered something of an unfair advantage by competing mortgage lenders.

Economic issues and newfound concern about mortgage risk appear to be at the root of the FHA's decision. In announcing its pending decrease of seller concessions from a lucrative 6% to a far less attractive 3% earlier this year, the FHA said the program had led to inflated home appraisal values that created an unacceptable risk for the mortgage lender. A FHA investigation revealed that many sellers who agreed to pay buyers' costs recouped those costs by adding them to the sale price. The FHA found itself approving mortgages on homes that were actually worth somewhat less - 6% less - than their selling price. With the FHA requiring home buyer down payments of only 3.5%, the agency found itself holding an awful lot of "underwater" paper on overvalued homes.

Real estate agents and mortgage brokers assisting buyers and sellers who are relying on the more attractive 6% seller concessions to bring a sale to contract will push to close those homes as soon as possible before the FHA enacts its policy change and the golden goose is gone forever!

Real Estate Professionals Are Negotiators.

Jerry Mcclellan (Goprosystems) — Mon, 28 Jun 2010 13:34:15 -0700

Do you ever take a few moments to read some of the articles that give advice to people buying and selling homes? There are so many of them on the internet and in the newspaper, you certainly cannot be expected to keep up with them. Although the advice is for your clients, if it is sound advice, you may find that some of it is uses. It will also help you become familiar with other real estate professionals who you may meet or want to consult with at some point.

Nancy Conner, author of "Buying a Home: The Missing Manual"wrote a book to help home buyers, but some of her advice may help you too. Conner describes real estate agents and "professional negotiators"-have you ever thought of yourself in that way? In an interview she notes,

"...your agent doesn't have to be your best friend, but it does have to be somebody you can feel comfortable communicating with. Your agent is representing a whole bunch of prospective buyers and can't read your mind..."

What is the takeaway for an agent from such a statement? Well, it is a reminder that good communication is essential to your success. You will find that you relationship with certain clients is warmer and friendlier than with others. That is okay. You need to be someone your clients can have a conversation with, whether you feel friendly towards them or not. And while we do not recommend that you remind a client of just how many buyers you represent, we think you can encourage them to be open with you and tell you what they want in a property.

Conner also tells a personal story of a time when, as a home buyer, she saw the need to rely on her own communication skills rather than her agent's: she and her husband sent a holiday card to the owner of a home she hoped to buy and that swayed him. She cautions buyers against meeting with a seller without their agent's knowledge, but does suggest that they ask the agent to accompany them at a meeting with the seller and the seller's agent. I'm not to sure how I personaly feel about this but It may work for some agents.

Clock Is Ticking on New Home Buyer Tax Credit

Jerry Mcclellan (Goprosystems) — Mon, 28 Jun 2010 11:20:52 -0700

The final countdown has started on the June 30 deadline for the home buyer federal tax credit. New home buyers who fail to close on Wednesday stand to lose up to $8,000. For many new home buyers, particularly first-timers, loss of the federal income tax credit could spell financial disaster. Many buyers are counting on the credit to make their home purchase affordable and may be forced to back out of their contracts without it. Buyers and their real estate agents are hoping the U.S. House of Representatives follows the Senate's lead in extending the closing deadline to September 30. The deadline extension, which would also require presidential approval, is backed by the National Association of Realtors, the American Land Title Association and other realty trade groups.

In an interesting turn of events, buyers who missed the April 30 contract deadline to qualify for the income tax credit may actually come out ahead of those who filed promptly. With home buyers harder to find since the credit expired, realty efforts to goose the housing market coupled with declining interest rates may wind up benefiting procrastinators. Since the tax credit expired on April 30, three things have happened that could pay those who delayed:

Many sellers have been forced to lower asking prices to attract buyers.
Builders and real estate companies are offering promotions valued at more than the credit.
Mortgage interest rates have declined from 5.125% in April to 4.75%, enough to save home buyers more than the value of the credit over the life of their loan.

Of course, whether home buyers benefit from buying in the post-credit market depends largely on market and price. As always, buyers will find better deals in stagnant housing markets. Buyers who appear to be benefiting the most in the post-credit market are those shopping for homes in the under $200,000 price range. Homes at this price point were snapped up fast this spring by first-time buyers anxious to take advantage of the tax credit. The lag in home sales since April 30 has forced many buyers to drop their asking price by as much as 30%. Coupled with the traditional June drop in housing prices as families scramble to move before the next school year starts in August, post-credit home buyers may be glad they waited.

A Social Media Application Designed Just for Real Estate

Jerry Mcclellan (Goprosystems) — Thu, 24 Jun 2010 11:21:45 -0700

Success in real estate today involves a combination of real-time, in-person effort while throwing some technology and automated tools in the mix. You may find that you need to do all of the things you used to such as attending networking events, making phone calls, sending out postcards and holiday greetings and taking out ads in addition to maintaining an online presence. Since this is the case, you will want to find ways to execute all of your marketing efforts in the most efficient manner possible.

We have already mentioned that Twitter is a very useful tool for real estate professionals. By creating and exchanging brief 140-character messages, you can spread the word about your business and gather useful information.

With the appearance of a micro-blogging tool like Twitter, there are, of course, tools to help you use this marketing tool better. There are even some that are geared specifically for real estate. One of these is Tweetlister. Tweetlister is a subscription-based tool that was created especially for real estate professionals. It is to be used exclusively for Real Estate and is monitored so that people who try to post spam or listings that are not real will find themselves blocked from the service. As far as legitimate listings go, you can post residential, commercial and vacation properties that you want to sell or lease.

Using this service, you can input listings yourself or have them automatically sent from your MLS listings. You can also schedule posts ahead of time and send these posts to more than one Twitter account. It also allows you to fill out a profile with a bio and photo

and have a landing page. Tweetlister gives you a breakdown of who has clicked on your listings. While you may not want to send the same listings every day, you can use Tweetlister to set up periodic posts of the same listings, removing that periodic update when the property has been sold.

Not only will a tool like Tweetlister help you reach your goal of getting properties sold, it will also assist with boosting the search engine ranking of your website or blog if you include links to your other online forums in your posts.

Redefinition of ‘Required Use' Could Level Playing Field

Jerry Mcclellan (Goprosystems) — Wed, 23 Jun 2010 14:31:01 -0700

The Obama administration is inviting the redefinition of "required use" offers. If discussions lead to an expanded definition of real estate settlement law, they could level the playing field, giving more real estate players a chance at the action. "Required use" is the term applied to the lucrative practice popular with home builders in which home buyers are offered special discounts, paid closing costs, construction upgrades and other incentives if they use mortgage and real estate services affiliated with the builder. Real estate critics have long claimed that affiliated services give privileged providers an effective monopoly that limits competition in the industry. Affiliated service providers have also been charged with jacking up prices, eliciting numerous consumer complaints.

While the Real Estate Settlement Procedures Act prevents "required use" clauses from legally forcing home buyers to purchase mortgages, title insurance or other real estate services from a builder's affiliated service provider, some builders have found an equally lucrative run-around. The Department of Housing and Urban Development (HUD) has logged an increasing number of consumer complaints about builders who tie construction and upgrade discounts and rebates to the use of affiliated services. Consumers feel trapped in a Catch-22 scenario. Attracted by builder discounts, they agree to purchase a home only to find at closing that they must also purchase high-priced affiliated services or lose their discounts.

HUD tried once before to address such abuse by extending "required use" prohibitions to include economic duress. HUD's attempt to prevent economic penalties tied to required use of affiliated service providers raised the ire of the National Association of Home Builders which filed suit to block the move. Faced with a protracted and expensive legal battle, HUD withdrew the changes.

The issue didn't die, however, and the Obama administration is opening it up for another airing. This month, HUD invited consumers, mortgage lenders, real estate agents, builders and other interested parties to share their experiences and suggestions about the "required use" issue. Support for changes in current regulations and practices is expected to come from the National Association of Mortgage Brokers and National Association of Realtors, both of whom favor a more open market and an end to exclusive builder practices.

What are your thoughts and feelings?